The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-07-14
OIL Trust DIVIDENDS.
AN EXPLANATORY CIRCULAR
FROM Mr.. J. v. LEWIS.
Why Stockholders We're Dlsappoint-
ed In the Expectation Of
Large Profits.

The following circular has been re-.
ceived by parties In this city largely
interested in the American Cotton Oil
Trust. It comes q, the annual report
OF the Board Of Trustees, made July
Let.
Toe year just ended has not been
satisfactory In all it's features. The
long continued drouth In Texas or I'd
other Southern States, added to very
bad spell Of unusually ssvere weather
at q most critical period OF the crop,
resulted in a largely decreased seed
yield, and in some sections such seed
as there wss was much deteriorated in
quality.
Markets for products have been very
uneven both at home and abroad, but
Of late prices have stiffsned so that
for the current year (l8s7 SS) results
there Is a large profit on stocks on
hand on the 3lst OF May, 1887, they
being carried In the account for the
fiscal year at prices only slightly above
cost.
The progress OF the trust has not
been free from rancour and annoyance
during the year. These sentiments
have been arc used by very erroneous
views which have been entertained
and extensively promulgated a. to the
trust and its objects. The greater
number Of trustees have been many
years In the cotton seed oil business,
snd1 their experience has been that,
although there have been seasons
when owing to extraordinary high
prices and large crops, q good deal OF
money has been made, yet tina, such
periods have been the exception.
A very large part Of the product
goes abroad, and the money realized
thereby comes to this country. Great
efforts have been, aud are still beins
made, TO increase sales abroad and the
outlook is very favorable. The trust
Ia, now completed It's organic alton,
and we believe Its purchases. Since
the beginning Of the last fiscal year
there has been large &C ession Of
properties to the trust. They nov
number as follows:
Refneries and soap works. 10; cot
ton seed crushing mills, Sc; cotton
congresses and gins, 10 OF these LOG
are wholly owned by the trust.
The trust ho,ds q large majority.
nearly the whole In twelve States, and
q large minority in three.
The properties OF the trust are alb.
solutely free OF oil debt and unen.
numbered, and indemnity bonds have
been taken u protect against liabili.
ties that might have been unknown a,
the time Of acquisition.
Ia the early days Of The trust there
were 30 many points no, covered, and
there we're - many desirable proper.
ties rot acquired that net profits were
comparatively small, being only 1896.
Ill 6s TO the end Of the fiscal wear
ending May 81. 1886. To the end Of
the fiscal year ending May 81, 1887
the net profits, after deducting all ex
penses, amounted 10 q, 439, 720 rs, ant
a. q meeting OF the Trustees helt
June 80, 1887, the following resoluiior
was adopted:
| Res ,lved, That there bs divided
from the profits OF the trust a ,nr
equal 10 "a upon each share or in,s,
eat In said irus, payable Al per sbay,
on and sf,er August l, 1887, Al ne
share on ard af,,r November /, 1887
8 psr share on and alter February /
1888, aud 81 per share on and alta,
MAY /, 1888
The number of trust tertlfoatea 4.
sued 10 date is All, 282. At meetIn,
Of the trustees held on June sC lss3
the following resolutions wsr
adopted:
Tnat arrangements be- st ouce mad,
TO place the certificate and transis
books with q public trust com ranv n
the city Of New York. In order tha
such company may take charge of an,
mske all transfers OF cerlIfcstes an,
that steps be at once taken,to lIst TINS
certificates on the New York Stool
Exchange. Taking up tho intn,e =
the business il 10 con.jde, ed that m,
outlook IL good. The crop a, presen